I can't go a day without being told to go online or to phone a number to check my credit score. I am guessing many of you know their score or knew it at one point. Do you know why it is good or bad or even what the number means for you? A low score doesn't always mean a high risk. A high score may mean you have but hardly use credit not that you are good with it. Small changes in the way you do things can bring about positive changes in your score and save a lot of money, but you need to understand the why behind the number.
Yes I know why my credit score is what it is. You should go to creditkarma to learn how your score is calculated. There are a variety of different factors that lead to a credit score such as the number of credit cards you have and for how long you've had them, your credit usage, and so forth. Research them.
A huge factor in your credit score is the utilization. It's not good to be almost at your credit limit. To have a better score, you should be using only 10% of your available credit on each card. Other factors are the age of your credit history and if you make your payments on time. The only reason I know this is because Credit Karma grades all these factors and gives a breakdown on their site.
